iSeeCars has compiled a list of 10 cars with the greatest depreciation after three years — the average leasing term length — for consumers looking to purchase a used car this year.
According to the car search engine and automotive research firm, this summer will see an "influx" of off-lease cars.
The average car depreciates 39.1% after three years, according to the car search engine and automotive research firm. However, iSeeCars identified 10 cars with a three-year depreciation between 51% to 55.8%, making the vehicles on its list the best deals for customers looking for used, three-year-old cars.
"Three years is a popular age for used car buyers because the cars have taken a major depreciation hit, but likely have many of the latest modern safety and technology features," iSeeCars CEO Phong Ly said in a statement for the study.
Of the 10 cars on the list, one is a luxury SUV and eight are luxury sedans, including the top spot: the Audi A6. According to iSeeCars, the A6 has an average price of $27,890 after three years, giving it a 55.8% depreciation and an average of $35,208 worth of savings compared to its new car price.
According to Ly, luxury vehicles make up the majority of the list because of their frequent leases, which then creates a surplus of used luxury cars after the leasing term is over. And because SUVs are more in-demand than other segments, luxury sedans are often left behind with reduced prices.
iSeeCars analyzed over 5.7 million new cars from the 2017 model year sold between January to June 2017 and compared those prices with over 1.2 million used cars from the same model year sold during the same months, but three years later in 2020. To accurately compare, iSeeCars adjusted the 2017 prices for inflation and found the averages.
Cars discontinued after the 2020 model year, heavy-duty vehicles, and low-volume cars were not included in the study.